Gold price fell again for the third session on Monday as the US and European governments agreed on plans to aid in the recovering of the collapsed banking systems, the positive results in the banking system lessened the demand of other safe-haven investments.

As the governments rescue plans restored confidence in the money markets and investors began investing again the stock markets improved as well as crude oil value rising for the first time in four days.

Gold for the December delivery slid to the lowest level since October 3. at 1.9 percent of $16.50 to finish up at $842.50 an ounce on the Comex division of the New York Mercantile Exchange

As investors looked for safe places to put their money gold was a good bet but the price decline just shows how gold prices can change once the demand for a safe haven fades.

Source: marketwatch

The British prime minister has persuaded European leaders that it would be beneficial to follow suit with a British-style bank bailout to halt global financial turmoil.

Gordon Brown seemed convinced on his departure from emergency crunch summit talks in Paris that the EU will follow his proposal for easing the credit crunch.

Mr. Brown told reporters “I am confident after talking to my European colleagues that more liquidity, funding for the medium term loans necessary for businesses and mortgages and the recapitalisation of banks are part of their thinking as well.”

He then went on to say: “The difficulty that we have got at the moment is in restoring confidence in the banking system. What is missing is confidence itself. I believe that the action we have taken in Britain will restore that, and we will see over the next few days’ worldwide action that will also see confidence restored.”

The Chancellor of the Exchequer Alistair Darling and Mr Brown last week announced their £500 billion rescue plan to help stabilize the deteriorating banking system. The package will see the government purchase up to £50 billion worth of equity in banks and in return give large guarantees to interbank lending.

The US after talks with the G7 nations in Washington on Saturday have followed suit with similar plans. Mr Brown failed to agree a joint course of action last weekend with his Italian, German and French counterparts, but after another catastrophic week in the financial markets it seems to have focused minds.

Source: ukpress.google

Government sources have confirmed that plans have been drawn to take a majority stake in Royal Bank in Scotland and large holdings in Barclays, HBOS and Lloyds TSB under the £500 billion bailout plan to unfreeze the frozen credit markets.

The source reported that government talks were still continuing over the weekend and warned that it is a fast-moving environment.

Following requests for emergency funding the government is expected to invest £12 billion in RBS, £10 billion in HBOS, £7 billion in Lloyds TSB and £3 billion in Barclays.

The government will have almost no option but to nationalize the entire banking sector if analysts’ predictions are correct of a further 20 percent decline in bank shares this coming week.

With markets closed in Japan and the US on Monday, G7 nations including Britain will be fighting strongly to avoid further declines in banking stocks that would have further detrimental affects on the world economy.

Source: Telegraph

Alistair Darling the UK Chancellor announced today details of the much anticipated part-nationalisation plan with £50 billion of British taxpayers’ money, the deal is a drastic new measure to win back consumer confidence in Britain’s high street banks. The Bank of England has also announced that under a Special Liquidity Scheme they will make a further £200 billion available and more if needed.

The Chancellor of the Exchequer has said he will make sure that banks have enough money to run their day-to-day business activities. This will kick-start the frozen credit markets and reassure customers that the banks are safe.

Royal Bank of Scotland, HBOS, HSBC, Barclays, Abbey, Lloyds TSB, Standard Chartered and Nationwide Building Society have all signed up for the up to £50 billion of additional financing in exchange for the taxpayer taking permanent internet shares (PIBS), ordinary shares or preference shares.

Mr Darling said this morning, “its important the tax payer gets some upside” and that he believes the £50 billion will go a long way and he will do whatever it takes to build up the bank’s capital again, “It’s not all we’re doing but it’s an important step forward”.

In London the FTSE 100 opened 114 points down, Lloyds and RSB both rose, after the horrific day yesterday for British Banks where Lloyds TSB fell 13 percent. RBS slumped 39 percent and HBOS crashed down a staggering 42 percent.

Read the full article: timesonline

]]> http://www.100mortgages.org/20081008/abbey-hbos-rbs-barclays-lloyds-tsb-all-signed-for-50-million-bailout/feed/ 0 http://www.100mortgages.org/20081006/neel-kashkari-will-control-the-us-700-billion-bailout/ http://www.100mortgages.org/20081006/neel-kashkari-will-control-the-us-700-billion-bailout/#comments Mon, 06 Oct 2008 19:51:11 +0000 Nikki http://www.100mortgages.org/?p=1324

If the name Neel Kashkari is not familiar to you don’t worry as you are not alone, this is the name of the man who will control the US $700 billion bailout rescue plan on a interim basis, so Neel Kashkari will certainly be a name we will be reading lots about as he embarks on the task of bailing out the US economy.

Kashkari was actually the Assistant Secretary of the Treasury for International Economics and Developments, and today he has become one of the most important men in America. However Kashkari is a former alum of Goldman Sachs Group similar to Henry Paulson. Whilst he was at Goldman Sachs he was the Vice President.

Henry Paulson head hunted Kashkari to join the Treasury in 2006, where he has been responsible for watching over the housing bubble and planning for this very situation, this is why in fact he has been chosen to be the man for the job.

Kashkari, 35, will be working on the set up of the Office of Financial Stability and will be responsible for organising its operations and mandate. The office will begin buying struggling debt in around four week’s time.

Source: rightpundits

After a chaotic week that sent markets tumbling the revised $700 billion bailout was approved by the House of Representatives which are a deal that will go down in US history as potentially the most expensive intervention by the American government.

As the $700 billion bill was hastily signed by the US President George Bush that could cost US tax payers $700 billion the President said “The government will purchase troubled assets,” he said. “And once the market recovers, it is likely that many of the assets will go up in value. And over time, Americans should expect that much, if not all, of the tax dollars we invest will be paid back.”

The House voted 266 to 171 in favour of the bill yesterday after they rejected the bill on Monday, although the bill had been sweetened to help it through.

The US Treasury Secretary Henry Paulson he would start funnelling funds into the troubled banks immediately the three page bailout memo that was originally initialled by Paulson turned into a mind field of legislation. The enormity of the bill is said to create a new maze for the government as institute’s line up for their government bailout.

After Bush signed the bill that was passed by the House of Representatives the US stocks dropped, early Friday the US stocks surged in anticipation but by Friday close down the NASDAQ lost 1.5 percent, the Dow Jones slid 1.5 percent or 157 points and the S&P 500 fell 1.4 percent.

Read the full story: theglobeandmail

At Capitol Hill today Barack Obama the Democrat presidential candidate returned to ask Congress to pass a $700 billion rescue bill for the financial sector as quick as possible.

Obama addressed the reluctant Republicans and Democrats to “do what’s right for the country at this time, because the time to act is now” in a Speech on the Senate floor.

The presidential candidate left Wisconsin where he is on his campaign trail to go back to Washington so he could vote on the bailout bill.

Obama has expressed how strongly he feels about the bill and has spend the last day trying to convince people that the bill is needed to aid in the recovery of the financial markets and US economy.

Source: APgoogleplunkett macleane free download

In Wall Street this morning the Senate will vote on a revised $700 billion bailout bill, this was after the House of Representative rejected it in its original format and sent share prices crashing. The Senate also confirmed that it would include a proposed increase the cap level of bank deposits insured by the federal government up to $250,000.

The rejected bailout earlier in the week was voted 228 to 205, the new revised bill is expected to have a much easier path through the 100-member Senate than it did with the house of representatives.

The bill is looked upon as a much-needed package to help the US economy that is on the verge of collapse due to the credit crunch and the burst of the housing bubble. Senators John McCain, Joe Biden and Barack Obama will all vote on the bill. President Bush pleaded earlier today with politicians to accept the bailout bill.

Read the full article: theaustralian

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President Bush pleaded with Congress again today to pass the $700 billion reuse package, this is the second plea from Mr Bush to Congress within 24 hours, frantically behind the scenes talks were going on in the White house as to what to do next to stop America going into recession.

But as the President of the United States continues his plea’s to the House of Representatives it’s clear that his presidential influence is fading.

Republican congressmen voted more than two to one yesterday against the $700 billion bailout which some have said was a massive rebellion.

Mr Bush has warned the American people that the damage to the US economy will be long and lasting without the rescue plan. Leaders of both parties and the US Treasury Secretary Henry Paulson fought over the aftermath of Monday’s vote, playing the blame game after the bill’s 228 to 205 defeat.

It’s said that tomorrow could see the Senate voting on the bill, in hope of increasing pressure on the Congress to pass the follow suit and pass the bill, however no decision has been made yet as where the US government will go from this latest shock to the financial system.

Read the full article: Timesonline

The US bailout rejection caused havoc with the FTSE 100 on Tuesday morning, within minutes of opening the index was down almost 100 points. The hardest hit on the London Stock Exchange were insurer Old Mutual and mortgage lender HBOS.

With the FTSE 100 suffering yesterday to, with the biggest one-day falls in the index’s history, sliding 5.3 percent amid the bailout talks and investors concerns on the outcome of the global economy and worries of falling into recession.

Las night Henry Paulson the US Treasury Secretary’s $700 billion bailout was rejected by Congress and caused the Dow Jones to fall the worse it has ever in history, a knock-on effect occurred around the world with Japan’s benchmark Nikkei 225 index falling almost 580 points.

Source: Telegraph